The property question revisited: The restitution myth

Abstract

The handling of the property question in the German unification process and Treaty has met with harsh criticism by east Germans and west Germans alike, unifying, for once, both radical and liberal left, as well as some conservatives. Conservative groups in the west were up in arms about the Treaty's recognition of the land reform under Soviet occupation, while the majority of people in the east and also the western left brandished the principle ‘restitution before compensation’ as a major obstacle to investment in the east. This article argues that restitution did not have the significance that is often claimed. In reality the situation was much more complex, and many other factors than the possible restitution of property were responsible for the slower than expected economic recovery of the east.